SANGHI INDUSTRIES LIMITED Vs. MICRO SMALL ENTERPRISES FACILITATION COUNCIL, DEPARTMENT OF INDUSTRIES RAJASTHAN

JUDGEMENT

(1.) The matter comes up on an application moved under Article 226 (3) of the Constitution of India for vacating the exparte stay order passed by this Court dated 16.01.2018 whereby the counsel has raised objections regarding maintainability of the writ petition.

(2.) Learned Senior Advocate for the applicant-respondent has taken this Court to the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 (hereinafter referred to as 'the Act of 2006') to submit that the order passed under the said provision is akin to arbitration proceedings as laid down under the Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the Act of 1996') . The Micro and Small Enterprises Facilitation Council passes an order under Section 18 of the Act of 2006 which would be termed as an award within the meaning of the Act of 1996 and, therefore, a challenge to the award passed by the said council can be made in terms of Section 34 of the Act of 1996 as there is statutory remedy provided under the Act of 1996 for challenging the award, the impugned award passed under Section 18 of the Act of 2006 in the present writ petition could have been challenged by the petitioners by filing objections/appeal under Section 34 of the Act of 1996 and the present writ petition ought to have been ousted on the ground of availability of alternative remedy as available under the Act of 1996.

(3.) Learned counsel further submits that the council which has passed the impugned order dated 26.10.2017 has, before passing the award, also attempted conciliation as envisaged under Section 18(2) of the Act of 2006. Thus all procedures as required have been followed and hence there was no occasion for this Court to have invoked jurisdiction of Article 226 and pass interim order in relation to the impugned order dated 26.10.2017.